McDonald’s sales in U.S. slip, though China returns boost bottom line

A man talks on a mobile phone next to a downtown McDonald's in Hong Kong in this April photo. McDonald's global sales grew 0.9 per cent, the company said Monday. (THE ASSOCIATED PRESS)

OAK BROOK, Ill. — McDonald’s says a key sales metric slipped again in the U.S. as it faced “ongoing broad-based challenges” in May.

The world’s largest hamburger chain said U.S. sales declined 1 per cent at locations open at least 14 months. The fast-food chain has been struggling to boost sales amid heightened competition and changing eating habits. Many of its core customers are also struggling financially, which has forced McDonald’s to intensify its focus on value.

Executives at McDonald’s have also conceded that the chain introduced too many items too quickly last year, which led to slower service and inaccurate orders. CEO Don Thompson has said the company is working with franchisees to address those problems, in part by ensuring restaurants have appropriate staffing.

The decline in the U.S. comes after a 1.7 per cent drop for the first three months of the year. And last year, sales at established U.S. locations slipped 0.2 per cent.

Overseas, a rebound in China after last year’s worries about avian flu helped lift sales by 2.5 per cent in its Asia, Middle East and Africa division. That in turn lifted global sales 0.9 per cent for May.

In Europe, McDonald’s largest market, the sales figure rose 0.4 per cent, boosted by improvements in the United Kingdom and France. An expanded beverage business was among the factors behind the improvements.

McDonald’s Corp., based in Oak Brook, Illinois, has more than 35,000 locations around the world. Its shares slipped 19 cents to $101.77 in premarket trading Monday. Its shares are up more than 5 per cent so far this year.